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Planet IPE february 2018

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QUOTE-UNQUOTE It’s a forward looking budget for the common man of the country. This budget focusses on the development of the poor, farmers, senior citizens and women. We welcome the government’s initiative to move classroom black boards to digital boards and the emphasis on training of untrained teachers for building a better India. The attention to health, affordable housing, and rural employment are the right interventions to build a more equitable society. Launch of the flagship National Health Protection Scheme with an announcement of medical insurance of Rs 5 lakh for 10 crore families is a huge initiative and will surely benefit the poor and the vulnerable. While this is a good start we need to work towards universal health coverage in subsequent budgets and continue committing funds. - ASHWAJIT SINGH

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KEY HIGHLIGHTS OF UNION BUDGET 2018 WINNERS

LOSERS

AGRICULTURE

FINANCIAL SERVICES

HEALTHCARE

REAL ESTATE

INFRASTRUCTURE

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AUTOMOTIVE

REVISED ESTIMATES (FY17-18)

BUDGET ESTIMATES (FY18-19)

FISCAL DEFICIT

3.5%

3.3%

REVENUE DEFICIT

2.6%

2.2%

GROSS TAX REVENUE

11.6%

12.1%

(AS % OF GDP)

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TAXATION • No change in personal income tax rates for salaried class. • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers • Corporate Tax rate cut to 25% for companies with turnover of Rs 250 crore. • Tax on distributed income introduced by equity oriented mutual funds at 10%; to tax long term capital gains exceeding Rs 1 lakh at 10% without indexation. • Increase of cess on personal income tax and corporation tax to 4% from the present 3%. The new cess will be called the “Health and Education Cess” and is expected to lead to a collection of an estimated additional amount of Rs. 11,000 crore.

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SENIOR CITIZENS • Exemption of interest income on deposits with banks and post offices proposed to be increased from Rs. 10,000 to Rs. 50,000. • Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D. • Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB

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CUSTOM DUTY • Custom duty on mobile phones increased to 20% from 15% • Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs • Social welfare surcharge of 10% on imported goods. • Customs duty on crude edible vegetable oils hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35% • Import duty on LCD/LED/OLED panels, parts of television hiked to 15%; duty on smart watches, wearable devices, footwear doubled to 20%.

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POOR & UNDERPRIVILEGED • • • • •

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8 crore poor women to be given free LPG connections. Government to construct around 2 crore toilets in next 2 years Construction of 51 lakh houses exclusively in rural areas. Increased allocation of INR 5750 crore to National Rural Livelihood Mission Allocation of Rs. 56,619 crore for SC welfare and Rs. 39,135 crore for ST welfare

EMPLOYMENT GENERATION • Government contribution of 12% of the wages of the new employees in the EPF for all the sectors for next 3 years • Facility of fixed term employment to be extended to all sectors. • Reduction in women employees’ contribution to 8% for first 3 yrs of their employment against existing rate of 12% • Setting up of a model aspirational skill centre in every district of the country.

RAILWAYS & AVIATION

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• Capital expenditure of Rs 1,48,528 crore for Indian Railways in 2018-19. • Escalators for all railways stations with more than 25,000 footfall. All railways stations and trains to have Wi-Fi and CCTVs progressively. • 56 unserved airports and 31 unserved helipads will be covered for usage by civilians under UDAN scheme. • Redevelopment of 600 major railway stations underwayup; Mumbai transport system is being expanded; suburban network of 160 km planned for Bengaluru • Foundation stone of the bullet train was laid in September 2017. An institute is coming up in Vadodara to train the manpower required for the high speed railway projects.

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DID YOU KNOW? 01 The word ‘Budget’ is derived from French. 02 Intelligence Bureau takes care of the security during the entire Budget period.

03 Union Budget of India is also referred to as the

Annual Financial Statement in the Article 112 of the Constitution of India.

04 India’s first Finance Minister, R.K. Shanmukham

Chetty presented the first Budget of Independent India on 26th November 1947.

05 The first-ever budget in India was introduced on 7th

April 1860 from East-India Company to British Crown by finance member James Wilson.

06 Jawaharlal Lal Nehru, who also was in charge of the

Union Finance Minister portfolio in 1958-59, was the first prime minister to present the budget.

07 Former Prime Minister, Morarji Desai has presented the maximum number of budgets so far, these included - 5 annual and 1 interim budget.

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` Planet IPE february 2018

IMPACT OF UNION BUDGET ON THE SECTORS

Finance Minister Arun Jaitley’s Budget 2018-19 had a lot for rural India and poor population of the country. Recalling the measures taken by the government in the past financial years like GST, FDI, demonetisation etc., the FM promised to double farmer incomes in the next five years and bring 10 million households out of poverty by 2019 and launched the world’s largest state-sponsored healthcare programme. The emphasis on technology, education and infrastructure were other important mentions towards a holistic development. The government also predicted the economy to grow at 7.2-7.5% in the second half of 2018-19 with a fiscal deficit of 3.3%.

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HEALTH & SANITATION

• Under the Ayushman Bharat Programme, New flagship National Health Protection Scheme announced. Rs 5 lakh per family per year for 10 crore poor families, with approximately 50 crore beneficiaries. This is the world’s largest government funded program. 1200 crore allocated for health wellness centres. These centres, 1.5 lakh in number, will provide free essential drugs and diagnostic services to bring health closer home. • 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals • Special scheme will be implemented to support Governments of Haryana, Punjab, Uttar Pradesh and Delhi NCT to address Air Pollution. Subsidized machinery for management of crop residue will be made available. • Rs 600 crore allocated to provide nutritional support for all tuberculosis patients

AGRICULTURE

• Proposed to raise institutional credit for agriculture to Rs 11 Lakh Crore for 2018-19 • Proposed to launch a restructure national bamboo mission with Rs 1200 crore. 10,000 crore allocated to fisheries and animal husbandry sector • Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets • Minimum support price set at 1.5 times the production cost for kharif crops • Proposed to launch ‘Operation Greens’ on the lines of Operation Flood’ which will promote farmer producer organisations and agri-logistics associations. Proposed to allocate Rs 500 crore for this purpose. • Proposed 100% tax rebate for farmer producer companies having a turnover of Rs. 100 crore

INFRASTRUCTURE

• Proposed a tunnel under Sela Pass. INR 12,420 crore for enhancing road connectivity in North-East in areas of strategic importance and international borders • INR 29,663 crore Bharatmala project to construct 34,800 km of road • INR 6,169 crore allocated under the Smart Cities Mission • AMRUT program to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19,428 core awarded. National Highways exceeding 9,000-km to be completed in 2018-19 • INR 21,000 crore for construction of 49 lakh houses under the Pradhan Mantri Awaas Yojana (Gramin) 8

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TECHNOLOGY & DIGITAL ECONOMY

• Niti Aayog to establish a national programme to direct efforts towards Artificial Intelligence, including research and development of its applications • Government to take steps to eliminate the use of Crypto-Currencies, will encourage Blockchain technology in payment systems. • Completion of the first phase of the BharatNet programme, having connected 1 lakh gram panchayats (GPs) with optic fibre; 5 lakh Wi-Fi spots to be created in rural areas • The Budget doubled the allocation on Digital India programme to Rs 3073 crore in 2018-19. • Rs 10,000 crore has been allocated to boost telecom infrastructure.

EDUCATION

• Increased digital intensity in education. Technology to be the biggest driver in improving quality of education • To launch ‘Revitalising Infrastructure and Systems in Education by 2022 • By 2022, every block with more than 50% ST population and at least 20,000 tribal people to have ‘Ekalavya’ school at par with Navodaya Vidayalas. • Two new full-fledged Schools of Planning and Architecture to be set up by the government. • Introduction of integrated B.Ed Programs for teachers to cater to the increased demand • INR 13 lakh crore to be set aside for teacher training. • Push towards digitisation of education, aim to move from Blackboard to digital and smart boards in the schools • Pushing for research in technical and medical education. Government is planning to spend Rs. 1 lakh crore in the next 4 years with the help of higher education funding institutions • Incentive to retain the best technical minds. Prime Minister Research Fellowship proposed for 1000 best B.Tech students in the country

TOURISM

• National Heritage City Development Augmentation Scheme undertaken to preserve and protect heritage cities in the country. • Proposal to develop 10 prominent tourist destinations as Iconic tourism destinations • Cleaning of Ganga is of national importance, sanctioned 187 projects under NAMAMI Ganga scheme 9


IPE News Desk NEW OFFICE LAUNCH IN DHAKA, BANGLADESH

IPE Global expanded its operations in the Indian subcontinent with the launch of its sixth branch office in Dhaka, Bangladesh. The opening took place on 16 January 2018 with the aim of strengthening the company’s presence and developing a deeper understanding of the needs of the development sector in the country. In line with the organisation’s constant quest to further improve its staff and clients’ experience as well as encourage collaboration and innovation at work, the new office will be staffed with senior experts from Bangladesh supported by India/UK/Africa offices.

REPUBLIC DAY CELEBRATIONS AT THE NEW DELHI OFFICE

Republic day celebrations at New Delhi office received enthusiastic participation from the IPEans. Dressed in Tricolour, everyone gathered for the Flag hoisting followed by cake cutting. The Selfie Contest also received contributions from employees across the branch offices. Join us in congratulating the winners of the contest and a special note of thanks to everyone who participated! 10


P-PAS AND NFSA AWARDED BEST E-GOVERNANCE INITIATIVES COMPUTER SOCIETY OF INDIA

PILOT BATCH OF MASTER TRAINERS TRAINED UNDER TEACHERS TRAINING PROGRAMME IN MEGHALAYA

Pilot batch of Master Trainers was trained in Shillong, Meghalaya, under Department of Education, Government of Meghalaya & ADB supported programme – ‘Design and Delivery of Professional Development Training Programmes for Teachers of Secondary/Higher Secondary Schools of Meghalaya, India’. IPE Global has been commissioned to provide consultancy services for the project. We will design and implement interventions for providing in-service professional development for teachers, head-masters/principals and master trainers.

Paddy Procurement Automation System (P-PAS) and National Food Security Act (NFSA) under the Food Supplies and Consumer Welfare department, Government of Odisha awarded best e-Governance initiatives at the 52nd Annual Convention of Computer Society of India in the State Level Initiative category. The nominations were filed by the Government of Odisha for the aforementioned flagship programs. Both P-PAS and NFSA were implemented in the state under OMEGA project funded by DFID.

TRAININGS/ WORKSHOPS CONDUCTED UNDER PROJECT VRIDDHI IN PUNJAB, HARYANA & UTTARAKHAND

VRIDDHI: Scaling up RMNCH+A Interventions, organised a training workshops in Punjab, Haryana & Uttarakhand for improving Care around Birth Practices. The workshop was well received by the participants, the government and also garnered coverage in the regional media.. The training was facilitated by state teams of VRIDDHI. Scaling up care around birth approach is one of the key interventions of the project supported by USAID. 11


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